Key facts
- Oil prices surged over 4% due to Houthi attacks in the Red Sea.
- Brent crude futures rose above $91 a barrel, and WTI crude climbed significantly.
- Houthi rebels warned shipping companies against loading cargo in Saudi ports.
- Saudi Aramco's record crude shipments from the Red Sea port of Yanbu are now at risk.
- Tankers carrying Saudi crude have rerouted to avoid Houthi drones and missiles.
- The Caspian Pipeline Consortium suspended loadings after tanker attacks near its Black Sea terminal.
Oil prices surged over 4% on Thursday, with Brent crude futures climbing above $91 a barrel, as escalating Houthi attacks in the Red Sea widened shipping disruptions. The attacks have forced tankers to reroute, raising fears of prolonged supply interruptions.
Saudi Arabia's national oil company, Saudi Aramco, had been shipping record volumes of crude from its Red Sea port of Yanbu in the weeks leading up to the escalation. However, Yemen's Houthi rebels have now warned global shipping companies against loading cargo in Saudi ports and threatened strikes, putting these shipments at risk. Saudi Arabia has been utilizing the 7 million b/d East-West pipeline to evacuate production, with a significant portion passing through Yanbu.
In response to the threats, two tankers carrying Saudi crude reversed course in the Red Sea after Houthis declared a naval blockade. The Caspian Pipeline Consortium also suspended crude loadings at its Black Sea terminal following attacks on two tankers. Meanwhile, Egypt's national gas company is reportedly in talks to secure significant LNG imports.
In other market news, global trading giant Vitol is reportedly considering selling its US shale oil joint venture for $2.3 billion. US oil major Chevron has signed an agreement for a cross-border oil pipeline project with Iraq and Syria. Norway's Vaar Energi is combining its business with BlueNord in a $1.33 billion deal, and US shale specialist Magnolia Oil & Gas Corp is acquiring WildFire Energy for $4.1 billion. The benchmark LME three-month copper contract also reached a one-month high.